Ethereum Liquid Staking Protocols Hit 14.14 Million ETH as Centralization Concerns Grow

B. Ali
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Ethereum liquid staking derivatives (LSD) protocols reached the 14 million ETH milestone one month ago, with a total of 14.08 million ETH. Since then, these protocols have accumulated an extra 60,000 ETH.

The Protocols now own 11.74% of the total 120,401,221 ETH in circulation because of the recent surge in popularity of Ethereum liquid staking. To put it in context, US spot ether exchange-traded funds (ETFs) handle just 2.28% of ETH. This amount is 5.15 times higher.

A total of 30 liquid staking protocols hit the 14 million ETH mark at the end of September, with a combined total of 14.08 million ETH.

Defi liquid staking systems have gained 60,000 ETH, or over $150 million, in the last 29 days. The current total holdings of LSD platforms are 14.14 million ETH, according to defillama.com. Lido Finance dominates the market with 9.75 million ETH, accounting for 68.97% of the total.

This represents a small decrease from last month, when it had 9.8 million ETH and 69.59% of the LSD market.

After Lido, Binance’s LSD platform has had massive growth in the last three months. There has been an increase from 1.42 million ETH held by Binance last month to 1.52 million today. Rocket Pool’s LSD, which ranks third, experienced a slight increase, going from 1.22 million to 1.23 million ETH.

Mantle ranks fifth with 480,629 ETH, followed by Coinbase’s staked ether protocol with 182,430 ETH. Approximately 13.16 million Ethereum (ETH)—or 93.19% of all ETH held by LSDs—are held by the top five protocols.

The effects on decentralization and network security are large, as a few large players have consolidated Ethereum (ETH) liquid staking. Buterin’s latest “Scourge” blueprint aroused concerns about the growing centralization of Ethereum staking. He warned that the decentralized spirit of Ethereum might be compromised if power were to concentrate in the hands of a few big companies.

Ether (ETH), Ethereum’s native currency, has emerged as one of the best-performing cryptocurrencies in the last 24 hours, gaining by more than 5.50% to over $2,630.

The increased probability of Donald Trump winning the forthcoming US presidential election, as well as the improved odds of an interest rate decrease at the next Federal Open Market Committee (FOMC) meeting, have been the primary drivers of these advances thus far.

Simultaneously, Ether’s potential to continue soaring into the election and interest rate season appears to be tremendous, thanks to favourable technicals.

Ethereum Surges Over 5.5% Amid Rising Trump Victory Odds and Prospects of Rate Cuts

Ethereum and Its Connection to a Possible Trump Victory

Ethereum’s price increase follows Donald Trump’s event at Madison Square Garden in New York on October 27, during which Tesla and SpaceX CEO Elon Musk guaranteed a $2 trillion tax break for Americans if Trump was re-elected.

Following the rise, the odds of a Trump victory increased, with Polymarket statistics indicating that 66.4% of bettors preferred that scenario. Trump supports cryptocurrency and has pledged that if re-elected, the United States will become the world’s crypto capital.  ETH’s price has surged by 6% after the Trump rally.

Another Rate Cut is Very Likely. The Federal Reserve’s interest rate decision will come on November 7. On October 29, the target rate likelihood for a 25 basis point (bps) rate drop was 96.60%, compared to 46.70% a month earlier.

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.